Detroit Floats New Pact With Creditors

Deal Would Resolve $288 Million in Pension-Related Debt

DETROIT—After months of ill-fated deals, the bankrupt city of Detroit has settled with two large banks for about 30 cents on the dollar in the city's only agreement so far with major creditors, according to court filings Monday.

The proposed settlement filed Monday night with the federal bankruptcy court in Detroit would be the third time the parties have attempted to persuade U.S. Bankruptcy Judge Steven Rhodes to allow the city to resolve $288 million in pension-related debt. According to court papers, the city will pay...